When configuring a distribution, Australian fund managers can set the distribution to withhold an ATO rate matrix. This article details how the AUS (Selective) withholding tax setting works. Please see the related article Creating and Managing Distributions (Full Guide)
This article publishes the matrix so you can verify the applied rate to any investing entity. The distribution audit report also surfaces the applied rate for each investing entity.
The "AUS (Selective)" setting overrides the investing entity rates using an agreed Australian Tax Office (ATO) rate matrix. In summary:
Investing Entity's Primary Tax Residency = Australia
If an ATO exemption code, apply associated ATO rate (0%)
If TFN or ABN is provided, apply 0%
If TFN and ABN are missing or 000000000, apply 47% (ATO no-TFN)
Investing Entity's Primary Tax Residency ≠ Australia
Caruso will apply a rate lookup based on:
Country of residency being an EOI or non-EOI country
Income type as classified by the fund manager
Resident investors
For investors with Australia as their primary tax residency, Caruso applies the rate determined by the value in the TIN field on the investing entity record. The TIN field holds a Tax File Number (TFN), ABN, or a valid ATO exemption code.
TIN field value | Code | Applied rate |
Australian TFN or ABN quoted | — | 0% |
TFN/ABN not provided (empty / |
| 47% |
Under 18 years of age |
| 47% |
Pensioner exemption — Age, Invalid, Service or Veteran's Pension |
| 0% |
Pensioner / allowance exemption — Other (Carer's, Sole Parent's, Widow's, etc.) |
| 0% |
Non-profit organisation exemption |
| 0% |
Business of providing consumer or business finance |
| 0% |
Norfolk Island resident (legacy) |
| 0% |
Non-resident investors
For investing entities where the primary tax residency is not Australia, Caruso applies a rate matrix based on their country of residence and the income type.
Distribution - Tax Classification | Resident — TFN/ABN quoted | Non-resident — EOI country | Non-resident — Non-EOI country |
AMIT cost base adjustment / Tax deferred | 0% | 0% | 0% |
Capital gains — Non-TAP | 0% | 0% | 0% |
Capital gains — Taxable Australian Property (TAP) | 0% | 15% | 30% |
Conduit Foreign Income (CFI) | 0% | 0% | 0% |
Foreign source income (other) | 0% | 0% | 0% |
Franked dividend | 0% | 0% | 0% |
Interest income | 0% | 10% | 10% |
MIT fund payment — Build-to-Rent (BTR) | 0% | 15% | 30% |
MIT fund payment — Clean Building | 0% | 10% | 30% |
MIT fund payment — Non-Concessional | 0% | 30% | 30% |
MIT fund payment — Standard | 0% | 15% | 30% |
Royalty income | 0% | 10–15% (DTA cap) | 30% |
Unfranked dividend | 0% | 15% (DTA cap) | 30% |
EOI Countries
The following Exchange of Information (EOI) countries are supported. If an investing entity's residency is set to a country not on this list, Caruso applies the Non-EOI rate above.
Country | Code |
Argentina | AR |
Belgium | BE |
Canada | CA |
China | CN |
Czech Republic | CZ |
Denmark | DK |
Finland | FI |
France | FR |
Germany | DE |
Hong Kong | HK |
India | IN |
Indonesia | ID |
Ireland | IE |
Israel | IL |
Italy | IT |
Japan | JP |
Korea, Republic of | KR |
Luxembourg | LU |
Malaysia | MY |
Netherlands | NL |
New Zealand | NZ |
Norway | NO |
Singapore | SG |
South Africa | ZA |
Spain | ES |
Sweden | SE |
Switzerland | CH |
Taiwan | TW |
Thailand | TH |
United Arab Emirates | AE |
United Kingdom | GB |
United States | US |
Vietnam | VN |
We plan to extend coverage to every country in the Taxation Administration (Information Exchange Countries) Determination 2018 — the full legislated list is published at legislation.gov.au/F2018L01596.